Three big takeaways from the event:
1. It’s never too early to start
The guidance from the Transition Plan Taskforce (TPT) is still very new, and is not yet supported by UK legislation. However, it’s clear that will not be the case for very much longer. Whether you are listed or not, every company will soon be expected to produce a robust and meaningful Transition Plan. This goes well beyond just setting credible net zero targets – rather the focus should be on how businesses plan to actually reach them, and what the strategic and financial implications of that might be. Our insta-poll during the seminar showed us that most attendees had set out net zero targets – so this is clearly something that will be on the minds of many.
2. Investors are keen to know more
Even though net zero reporting isn’t mandatory yet, investors are still very keen to find out whether companies are making progress. That means making it clear in your ESG, sustainability and/or annual reporting that tangible steps are being taken to reach net zero. Fortunately, following the publication of the TPT’s Disclosure Framework and Implementation Guidance, there’s a lot more concrete information available to help reporters out.
3. For now, the depth of reporting varies significantly
During the webinar we showcased good practice net zero reporting from leading FTSE 100 reporters, including Shell, Standard Chartered and Unilever. For the moment, very few reporters offer comparably insightful content, but we expect that to change quite quickly. Looking forward, it will be particularly important to explain how any pre-existing net zero ambitions mesh with the new ‘official’ Transition Plan structure, and to connect net zero targets and actions to corporate strategy, and to disclosures in the financial statements.
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